Unit trusts posted net outflows in June, the first time this year that withdrawals have outpaced investments.
The Investment Funds Association reported a net outflow of US$9.78 million from locally authorised unit trusts in June, with most of the money leaving funds that invest in Asia outside of Japan and Hong Kong, in emerging markets outside of Latin America and in bonds.
Big and small investors adopted
divergent investment strategies. Insti
tutional investors withdrew a net US$125.8 million in June, while retail investors added a net US$104.5 million to their fund holdings.
Fund-management professionals attributed the outflow to profit-taking as investors reacted to directionless markets and interest-rate concerns.
'On the inflow side, people were waiting for markets to have an apparent trend before piling in,' said Sandra Lee Yuen-man, the head of brand development and strategic planning at Jardine Fleming Unit Trusts.
